Investors in Eve Sleep are due for another bad night’s sleep as losses have trebled at the mattress company which has lost more than a fifth of its value since floating four months ago.
The online business, which delivers roll-up foam mattresses to customers in a box, launched itself on London’s junior market in a £140m listing as part of its efforts to raise £32m cash to fund its expansion.
However, the £2.1m of costs associated with the flotation has already eaten into Eve’s bottom line.
Pre-tax losses widened from £3.2m to £9.1m for the six months to the end of June. Meanwhile, losses before interest, tax, depreciation and amortisation also swelled by £3.7m to £6.9m.
Eve blamed the widening losses on the “rapid investment in the business in existing and new territories”.
Meanwhile sales at the two-year-old company soared from £5.1m in the first six months of 2016 to £11.5m during the same period this year, helped by its expansion in the UK, Germany and France.
Jas Bagniewski, founder and chief executive, said: “We are a young company with much to prove in the £26bn European sleep market. While the broader furniture market including mattresses has been slow to transition to online purchase, the pace of change is now starting to accelerate.”